On 5 December 2018, LiveHire Limited (ASX: LVH) announced that it was successful in securing an enterprise agreement with DuluxGroup. DuluxGroup is a leading marketer and also a very popular manufacturer of premium home improvement products. LVH entering into an enterprise agreement with the DuluxGroup will encourage recruitment of employees across various brands and products.
It was also highlighted, entering into an enterprise agreement with DuluxGroup will enhance the annual recurring revenue of the more than three times the existing annual recurring revenue of LVH. Above that, there will be additional non-recurring revenues as well.
On the other hand, DuluxGroup also has a strong faith in the LVH platform. They believe that LVH platform has the potential to solve problems of larger and more complex organization across the world. This agreement has led to the sales strategy progress of LVH.
Since inception, the performance of the company is -166.67%. Since last year, the performance of the company is -56.76%. There was a continuous negative performance until the last three months. One-month performance of the company is 41.18%.
For the year ended 30 June 2018, the company incurred a net loss of $10,096,222. The balance sheet of the company appears quite healthy. However, as a result of a year on year increase in the accumulated loss, there is a negative impact on the balance sheet. The total asset of the company is $34,216,135 and the total liabilities of the company is $1,925,095 which implies that the company holds a position to meet its long-term obligations. The company holds a total current asset of $31,167,617 and total current liabilities of $1,925,095 which also indicates that the company is in apposition where it could easily manage the short-term obligations as well as net working capital. Increase in the accumulated loss indicated that during this period, the shareholder’s wealth also got eroded.
The net cash outflow from the operating activities of the company was $5,773,949. Here, the main source of cash outflow was due to the payment made to the suppliers and employees. There were other sources of cash inflow in the form of receipts from the customers, interest received as well as receipt of the R&D tax incentive.
The net cash outflow from the investing activities of the company was $1,271,577. Here, the main source of cash outflow was due to the payment made for an intangible asset, payment for held-to-maturity investments and payment for plant and equipment. Simultaneously, there was cash inflow in the form of receipt of Research & Development Tax Incentive.
The net cash inflow from the financing activities of the company is $19,370,156. Here, the main source of cash inflow was through the income from the issue of shares. Simultaneously, there was a net cash outflow in the form of transaction cost associated with the issue of shares.
By the end of FY2018, the net cash available with the company was $30,073,106. By the end of the trading on 6 December 2018, the market price of the share price was A$ 0.520 with the stock holding a market capitalization of A$127.98 million.
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